BX · 10-Q · 2026Q2 · Full report

Private Credit Market Conditions

Blackstone Inc. · 2026-08-07 · Importance 37 · Surprise 32 · In source text

Blackstone described the Credit & Insurance market as volatile but supported by increased financing and investment activity, strong interest income, and generally stable underlying credit performance. Defaults in direct lending have risen and are expected to continue rising from historically low levels. The segment’s holdings are predominantly senior secured credit with significant equity subordination from institutional borrowers, which management believes provides protection against deterioration.

Key facts

• Credit & Insurance stated defaults in direct lending have risen and they expect defaults will continue to rise from a historically low level, but funds' holdings are predominantly in senior secured credit with significant equity subordination from institutional borrowers. source
• Management fee rates for vehicles within the Credit & Insurance segment generally range from 0.20% to 1.25% of net asset value or fair value of investments for certain separately managed accounts and open-ended vehicles. source
• Management fee rates for BDCs and certain registered investment companies generally range from 0.35% to 1.25% of net asset value or gross asset value. source
• Management fee rates for CLO vehicles generally range from 0.30% to 0.50% of the aggregate par amount of collateral assets, including principal cash. source
• Management fee rates for Credit & Insurance drawdown vehicles and certain separately managed accounts generally range from 0.20% to 1.50% of invested capital. source

Impact estimates